Solana continues to demonstrate superiority over Ethereum and other smart contract blockchains in decentralized exchange (DEX) volume, despite the overall stasis in the crypto market.
Growth of Solana Transactions Volume
According to DeFiLlama, Solana-based DEXs have recorded over $60 million in total trading volume this month, almost double Ethereum’s $34 million. The network’s lower fees and higher throughput attract developers and investors.
Financial Performance and Dominance
Solana has been the leader in DEX volume since October 2023. In January 2024, Solana-based DEXs processed $258 billion in transactions, surpassing Ethereum’s $86 billion. Despite low costs, the blockchain also generates significant revenue: February earnings were $25 million for Solana compared to $16 million for Ethereum, and January earnings were $124 million compared to $109 million.
Comparison with Ethereum in TVL
Despite Solana's DEX volume lead, Ethereum still leads in total value locked (TVL), a key metric for measuring blockchain adoption. Ethereum's TVL is $57 billion, while Solana's is $9 billion.
While Ethereum remains the largest DeFi ecosystem, Solana's continued growth in trading activity and revenue generation could signal long-term shifts in the blockchain landscape.
